Domestic airfares increased by 30-45% ahead of Diwali

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Due to a higher demand, airfares have risen by 30 to 45% on a YoY basis during diwali, Business Standard reported on Thursday. The average one way economy class fares on top 10 booked routes including Mumbai to Delhi, Mumbai to Kolkata are 30%  higher YoY, while those on Bangalore to Kolkata and New Delhi to Kolkata routes are 40 and 45% higher YoY, according to data from travel portal Ixigo. However, the Delhi to Patna and Bengaluru to Patna routes were charged 25% lower on a YoY basis.

It said that the availability of large number of trains this year as against the previous year could be the reason behind the falling rates to Patna.

According to the publication, Ixigo has observed an increase in bookings for travellers who are heading home or planning a leisure getaway for Diwali holidays. It further said that, with international destinations easing pandemic restrictions and expects demand for leisure travel to increase further for the new year.

Airline turbine fuel nearly doubled on a YoY basis

Ixigo said that increasing travel confidence has resulted in a shift in advance purchase pattern trends. In October, share of bookings for travel beyond 30 days has increased, indicating pre-planned advance purchase behaviour which had become last minute purchase behaviour in the midst of the pandemic.

While demand is looking healthy, cost pressure is also on the rise. Airline turbine fuel price on a YoY basis almost doubled and fare hikes are much lower in comparison, according to an industry executive.

Domestic airlines flew the highest on Sunday, with 3,27,923 passengers, the highest since the resumption of air travel last May. The MoM air traffic growth has been fuelled by rapid vaccination and ease of state wide restrictions.